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IMF warns "Bitcoin is privately issued and carries significant risks", cryptocurrency community fires back: IMF is about to disappear

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IMF warns "Bitcoin is privately issued and carries significant risks", cryptocurrency community fires back: IMF is about to disappear

It is well known that the International Monetary Fund (IMF) has always taken a very negative stance on Bitcoin. Recently, it has once again issued a warning, stating that cryptocurrencies like Bitcoin are privately issued and carry significant risks. Equating them to national currencies is a shortcut that should be avoided.

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The IMF reiterated the risks of cryptocurrencies in a tweet last Saturday, claiming that they are privately issued, carry significant risks, and should not be considered legal tender.

IMF's tweet immediately sparked mockery within the crypto community. Some bluntly stated that the International Monetary Fund is becoming an irrelevant organization, with Dan Tapiero, founder of investment fund DTAP Capital, even predicting, "IMF will cease to exist within 10 years."

The tweet from IMF quoted an article written by two of its legal advisors on July 26. Titled "Cryptocurrencies as National Currencies? Still a Long Way to Go," the authors warned that adopting Bitcoin as legal tender, as done by countries like El Salvador, carries risks, and since central banks cannot set interest rates for foreign currencies, monetary policy would become ineffective.

A Twitter user argued that IMF categorizing BTC (a public, open-source protocol) as a "privately issued" asset is ironic, as national currencies are essentially privately issued.

Some also believe that fiat currencies pose greater risks than Bitcoin, stating, "Government-issued fiat assets like the US dollar come with immense risks, especially when lent out by intergovernmental organizations with a history of bankrupt states."

Others responded that IMF's increasing anxiety stems from companies and individuals diversifying their wealth into Bitcoin and cryptocurrencies rather than their Special Drawing Rights (SDR), which is a reserve asset and accounting unit created by the International Monetary Fund.

This article is authorized to be reposted from Horizon News Network